The U.S. Bank Tower from Hope and 8th

The economy of Los Angeles is driven by international trade, entertainment (television, motion pictures, recorded music), aerospace, technology, petroleum, fashion, apparel, and tourism. Los Angeles is also the largest manufacturing center in the United States. The contiguous ports of Los Angeles and Long Beach together comprise the most significant port in North America and one of the most important ports in the world, and they are vital to trade within the Pacific Rim. Other significant industries include media production, finance, telecommunications, law, health and medicine, and transportation.

For many years, up until the mid-1990s, Los Angeles was home to many major financial institutions in the western United States, including First Interstate Bank, which merged with Wells-Fargo in 1996, Great Western Bank, merged with Washington Mutual in 1998, and Security Pacific National Bank, which merged with Bank of America in 1992. Los Angeles was also home to the Pacific Stock Exchange until it closed in 2001.

The city is home to three major Fortune 500 companies, including aerospace contractor Northrop Grumman, energy company Occidental Petroleum Corporation, and homebuilding company KB Home. The University of Southern California (USC) is the city's largest private sector employer.^[7]

Other companies headquartered in Los Angeles include Twentieth Century Fox, Latham & Watkins, Univision, Metro Interactive, LLC, Premier America, CB Richard Ellis, Gibson, Dunn & Crutcher LLP, Guess?, O'Melveny & Myers LLP, Paul, Hastings, Janofsky & Walker LLP, Tokyopop, The Jim Henson Company, Paramount Pictures, Robinsons-May, Sunkist, Fox Sports Net, Health Net, Inc., 21st Century Insurance, L.E.K. Consulting, and The Coffee Bean & Tea Leaf.

The metropolitan area contains the headquarters of even more companies, many of whom wish to escape the city's high taxes. For example, Los Angeles charges a gross receipts tax based on a percentage of business revenue, while most neighboring cities charge only small flat fees. The companies below clearly benefit from their proximity to Los Angeles, while at the same time avoiding the city's taxes (and other problems). Some of the major companies headquartered in the cities of Los Angeles county are Shakey's Pizza (Alhambra), Academy of Motion Picture Arts and Sciences (Beverly Hills), City National Bank (Beverly Hills), Hilton Hotels (Beverly Hills), DiC Entertainment (Burbank), The Walt Disney Company (Fortune 500 – Burbank), Warner Bros. (Burbank), Countrywide Financial Corporation (Fortune 500 – Calabasas), THQ (Calabasas), Belkin (Compton), Sony Pictures Entertainment (parent of Columbia Pictures, located in Culver City), Computer Sciences Corporation (Fortune 500 – El Segundo), DirecTV (El Segundo), Mattel (Fortune 500 – El Segundo), Unocal (Fortune 500 – El Segundo), DreamWorks SKG (Glendale), Sea Launch (Long Beach), ICANN (Marina Del Rey), Cunard Line (Santa Clarita), Princess Cruises (Santa Clarita), Activision (Santa Monica), and RAND (Santa Monica). The L.A. area is also home to the U.S. headquarters of all but two of the major Asian automobile manufacturers (Nissan North America is in the process of relocating its headquarters from Gardena to the Nashville area, and Subaru's U.S. operations are based in Cherry Hill, New Jersey). Further, virtually all the world's automakers have design and/or tech centers in the L.A. region.

Downtown Los Angeles is also the home of the Los Angeles Convention Center which hosts many popular events including the annual LA Auto Show in January.